tZero is a cryptocurrency exchange platform that has been in development for years now. It was developed by Overstock.com and owner/CEO Patrick Bryne. Just two months ago, Patrick Bryne announced plans to sell Overstock.com in order to put all his focus on blockchain and cryptocurrency related business. Since then his investment division, Medici Ventures has continued to invest in blockchain startups, and now tZERO has won a patent with the U.S. Patent Office.
"I don't care whether tZero is losing $2 million a month…. We think we've got cold fusion on the blockchain side." - Patrick Bryne
“Systems and methods for authenticating video using watermarks”
The title of the patent sounds like it has little to do with stock exchanges or cryptocurrencies. However, this highlights how important miniscule changes to data and network infrastructure are to their overall function. Digital content is essentially any data, and this data could be digital assets, cryptocurrencies, or the ledgers that maintain the transactional history of a given blockchain or cryptocurrency.
“The Crypto Integration Platform provides, among other things, an interface between legacy trading systems and crypto exchanges that trade digital transactional items.”
The Patent uses a watermarking method in hopes that it will allow for a smooth integration of cryptocurrency exchanges and traditional systems by delineating ownership through a ledger of transactional data - whether related to a digital asset or a traditional exchange traded product.
tZero represents the full leap into the cryptocurrency and blockchain technology industry that CEO Patrick Bryne is making. Overall, the platform hosts an alternative trading system for securities, along with a cryptocurrency wallet. These securities now have the potential to be either traditional or digital with this patent. The wallet was developed in collaboration with another startup called Bitsy.
Regarding the continual regulatory issues with cryptocurrencies exchange. tZero has taken steps to prevent them. They hold majority stake of two SEC registered and FINRA Member broker-dealers, SpeedRoute LLC, a premier routing and execution firm, and PRO Securities LLC, an Alternative Trading System (ATS). Notably, Pro Securities was the first SEC and FINRA regulated ATS to facilitate secondary trading of a crypto security.
By: BGN Editorial Staff